Effective July 1, 2022, retailers must add a $0.27 ‘retail delivery fee’ to sales that include taxable goods delivered via motor vehicle in Colorado. All sellers are responsible for charging this fee to the purchaser and remitting payments to the Colorado Department of Revenue (CDOR). Here are some simple steps to help prepare for implementing Colorado’s retail delivery fee.
How to Comply With Colorado’s Retail Delivery Fee Requirements
1. Don’t panic! Many retailers are just now learning about this new fee. Recognizing the tight turnaround for implementation and compliance, CDOR will be “generous in granting requests to waive late filing and payment penalties and interest” to retailers who are making a “good-faith effort” to comply.
2. Confirm with your service provider that your POS system is set up to collect the retail delivery fee for reporting and remittance. This fee must appear on receipts as a separate charge. Per CDOR, “Fee must be charged to the purchaser as a ‘retail delivery fee’ and separately stated from the purchase price of the item(s), the sales or use tax, and any other fees or charges applied.”
NOTE: If you’re an ASAP accounting client, please connect with us for continued guidance on tracking and remitting delivery fee payments.
3. Carefully review guidance on the Colorado Retail Delivery Fee website and Form DR 1786. (Hint: Scroll down for helpful FAQs). If you have questions or need support, contact the CDOR Taxpayer Helpline at (303) 238-7378.
